The city of San Diego's appeal of a multimillion dollar award won by a developer has been transferred to Riverside because nearly all the appeals court justices in San Diego have recused themselves from the case.

Justices in the 4th District Court of Appeal don't have to explain why they can't handle a particular case, but a lawyer for the developer said it primarily is because of their relationships with the Superior Court trial judge.

The transfer this week means justices in the Riverside division of the state court will have to decide whether to overturn the then record $94.5 million judgment won by developer Roque de la Fuente II.

Justice Richard Huffman of the appeals court tried to mediate a settlement between the city and de la Fuente, but negotiations were suspended after three meetings in August and September.

"We have remained open-minded and ready, willing and able to settle the case on a win-win basis," said Vincent Bartolotta Jr., one of de la Fuente's lawyers.

The city wants to have it its "way or no way at all," Bartolotta said.

Deputy City Attorney Anita Noone said she couldn't comment on the city's current position on mediation, but last year said the city "has always been open to meaningful settlement negotiations."

De la Fuente sued the city after blaming it for the failure of his Otay Mesa business park. He said the city wanted the land and ruined its value by announcing plans for a nearby airport and by routing border traffic to adjacent streets.

Jurors in Superior Court sided with de la Fuente's in January 2001, after which the city accused the trial judge, Vincent Di Figlia, of having a conflict of interest.

In October 2001, a judge in Orange County found that allegation unfounded. However, he reduced the judgment to $65.3 million and added interest, putting the amount owed then at $91.7 million.

Relationships between the justices and the trial judge led many members of the San Diego-based court of appeal to recuse themselves from the case, Bartolotta said. There ae 10 justices on the bench.

One of the justices decided he couldn't consider the case after learning that a law clerk had worked on the business park's 1986 development agreement.

Thus, without enough justices for a three-judge panel to hear arguments, the case had to be transferred.

Bartolotta said the city owes de la Fuente more than $100 million as a result of the jury verdict and interest added while the appeal is pending.

Interest is accruing at about $500,000 a month, he said. Legal fees will have to be included in a judgment.

Lawyers for the city are confident they will win on appeal.

In court papers, the city describes de la Fuente's case as a "fraud" and is asking the court of appeal to reject the jury's findings and overturn decisions made by Di Figlia and the Orange County judge.

Meanwhile, the city's insurance carriers have sued in federal court to avoid paying the judgment and legal fees. A federal judge has put off deciding the merits of that case until appeals in state court have concluded.